Crypto Trading

In May 2020, Bitcoin is scheduled to have its third halving, an event that will reduce production of the digital currency by 50%. While the Bitcoin network has experienced two halvings already, in 2012 and 2016, market participants are paying keen attention to this upcoming event to see whether it turns out differently. The digital currency markets have changed over the years, attracting a more diverse group of participants and…

Digital assets are relatively new compared to many other asset classes, and their regulatory framework has changed significantly over the years. Many jurisdictions and their regulatory entities have sought to provide an ideal environment for digital assets. In a February 2020 speech, Hester M. Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), proposed creating a safe harbour period for token sales. Under this plan, which was unveiled…

In the months since the novel coronavirus (COVID-19) gained global visibility, governments around the world responded by taking drastic action. At the time of this writing (27th March 2020), health care professionals had confirmed more than 375,000 cases and more than 15,000 people had died, according to the World Health Organization (WHO). The global outbreak, which the WHO labeled a pandemic on 11th March 2020, has had a significant impact…

Central banks in many different countries have been exploring the potential use of central bank digital currencies (CBDCs), which have in turn drawn the interest of cryptocurrency enthusiasts, industry participants and policy analysts. A January 2020 survey conducted by the Bank for International Settlements (BIS) showed that roughly 80% of the 66 central banks polled were doing some kind of work with these digital currencies. Further, approximately 40% of participants…

IDX Insights, a financial research and development firm, released a cryptocurrency index that it has described as the first "Smart Beta" crypto index. For context, Fidelity defines "Smart Beta" as "an enhanced indexing strategy that seeks to exploit certain performance factors in an attempt to outperform a benchmark index." By leveraging this index, investors can harness factor-based strategies to potentially generate compelling risk-adjusted returns. The index seeks to take advantage…

What Is The Crypto Rating Council? If a digital asset is deemed a security by government regulators, that determination can have major implications for the asset's creators, investors and network. Over the last several years, the U.S. Securities and Exchange Commission (SEC) has sued several companies that issued digital assets, alleging that they sold unregistered securities. While regulators have previously released guidance on what defines a security, many digital assets…

What Is An Initial Exchange Offering? An initial exchange offering (IEO) is a sale of digital assets that takes place through an exchange. An IEO is similar to an initial coin offering (ICO), except that an IEO has the backing of an exchange. IEOs are also different from security token offerings (STOs), which involve sales of digital assets that have been securitised. STOs have their own benefits and drawbacks. More…

Libra is a digital currency that was developed by Facebook in an effort to empower people all over the world. To achieve this objective, the social media giant aimed to create a global digital currency and infrastructure that would help provide financial inclusion to billions. In turn, the Libra Association, a Switzerland-based nonprofit, was created to help govern the network that underlies the Libra currency and help it realise its…

Decentralised exchanges, or DEXs, provide investors with an alternative to centralised exchanges. Because DEXs do not harness a third party to hold or "custody" customer funds, they are not vulnerable to hacks in the same way as their centralised counterparts. However, these exchanges are not without their weaknesses, as they can suffer from problems such as low liquidity. Defining 'DEX' Decentralised exchanges allow peer-to-peer transactions, which make it so that…

Knowledgeable investors can generate returns regardless of whether the markets are trending upwards, downwards or sideways. Making money during bullish conditions may be one of the the easiest method, as a rising tide lifts all boats. Downward trending markets also provide potential opportunities. Producing returns during sideways or "flat" markets may be the most challenging option, but there are several strategies investors can use to achieve this objective. This article…

What Is Crypto Custody? Digital currency traders can benefit from knowing the options they have for custodying cryptocurrencies. While many assets can only be held indirectly, investors can have direct custody of their cryptocurrencies. This feature sets them apart from other asset classes like stocks and bonds. This article provides a breakdown of the different custody methods in addition to their individual costs and benefits. Indirect Ownership Indirect ownership takes…